Sleney Company applies overhead on the basis of direct labor dollars, using a rate of $1.65 per labor dollar. How much overhead would be applied to products in January if $15,200 of labor costs were incurred and 2,200 labor hours were worked?
A) $33,440
B) $25,080
C) $3,630
D) $15,200

Question

Quizplus · Accepted Answer

To calculate the overhead applied, we need to multiply the labor cost with the overhead rate:

Overhead applied = Labor cost x Overhead rate

Labor cost = $15,200
Overhead rate = $1.65 per labor dollar

So, Overhead applied = $15,200 x $1.65 = $25,080

Therefore, the best choice is B.

Sleney Company Applies Overhead on the Basis of Direct Labor